BANKING & INSURANCEDefence put forward by RBS chiefsThe controversial rights issue proposed by Royal Bank of Scotland will leave institutional investors with no option other than to accept it, despite leadership
and refinancing strategy concerns.
(The Scotsman) The expected announcement of a £12billion refinancing plan was made by RBS chairman Sir Tom McKillop and Sir Fred Goodwin, the chief executive, in front of disgruntled shareholders at the bank's annual general meeting in Edinburgh yesterday. The senior bosses were on the receiving end of criticism regarding the purchasing of Dutch bank ABN Amro and the salaries of top executives. McKillop secured re-election to the board with 98.9% of shareholders backing, however insiders have suggested that the re-election was not an endorsement of the actions Goodwin and McKillop have been carrying out. Reports have suggested that investors will take up the share offer before the deadline in May, despite rumours that they will seek a resignation from Goodwin. One well-placed source said: "There will always be complaints and grumbles and talk of the need for change but in the end these institutions will be forced by reality to take up this offer."
Glasgow to benefit from Resolution mergerThe combined asset management business of Pearl and Resolution yesterday appointed Gavin Stewart as their new chief executive.
(The Herald) The move means that their operations based in Glasgow will now control £80billion of the funds of the merged group. A new business combining Axial Investment Management and RAM was announced yesterday by Pearl. Although the move ensures 400 jobs are safe, not all of the funds will be run from Glasgow. Stewart yesterday told The Herald: "The Axial and RAM businesses complement each other extremely well and there is little overlap in the services they provide, so there is really no point in bringing the London operation up to Glasgow. However, the potential of the combined business is enormous. I've only taken this job because I'm confident I can grow the business. And as it grows, the number of jobs in Scotland will also grow."
Read all today's banking news from scotsman.comENERGY & UTILITIESRefinery strike set to take place as talks failThe two-day strike by Ineos workers will go-ahead as planned after discussions to end the dispute remained unresolved.
(The Herald) Around 1,200 workers at the only oil refinery in Scotland, will walk out from Sunday causing fuel supplies to run desperately low across the country. Despite two days of talks between the workers union and senior bosses at Ineos, the union announced that the dispute over pensions had not yielded any agreement.
Tom Crotty, Ineos chief executive, said: "We have done everything we can to resolve this. Our latest offer to suspend all proposed changes to the existing pension scheme is another example of us bending over backwards to bring this conflict to an end. The plain fact is that the union seems hell-bent on pursuing a strike that will cause chaos and
disruption for the people of Scotland and across the UK."
Shell to cut 300 jobs in AberdeenShell has announced that they are to cut 300 jobs from its Aberdeen-based operations. The oil giant has made the cuts after finishing a cost and efficiency study looking at work processes and assessing areas where gains in efficiency could be created.
(The Herald) Shell's announcement has been met with disdain by union officials, who believe that the move is just the beginning of a complete move out of Aberdeen, a claim which has been denied by Shell. Graham Tran, of the Amicus Unite union, said: "There are around 600 jobs in Shell that have been affected in the last 12 months and my members are saying they believe there is a blueprint on the chief executive's desk to transfer lock, stock and barrel and operate out of the Hague. Only a year ago they cancelled plans to build a new HQ in Aberdeen so Shell's days, quite frankly, are numbered and I think the sooner they go maybe the better." However, John Gallagher, a Shell vice-president, pledged the company's commitment to the North Sea, saying: "I think his comments are absolutely ridiculous. For someone who carries so much responsibility and represents so much of the industry for him to say this about one of the leading players is frankly ridiculous.
"It is totally out of context - look at the facts. We have leading infrastructure positions here in the North Sea and we are bringing four fields on stream this year.
Next generation of oil leaders discuss future of the industryThe offshore industry has been challenged by the recommendations of over 200 young professionals working in the oil and gas sector.
(Aberdeen Press & Journal) Issues affecting the future of the industry were raised at the Oil and Gas UK Next Generation Conference held in Aberdeen Exhibition and Conference Centre yesterday. The potential leaders of the future voiced their opinions on the future of issues such as economic and commercial challenges, health and safety and the environment. Oil and Gas UK chief executive Malcolm Wicks said: "I am delighted that today's conference has been such a success. The industry's younger professionals were challenged to think innovatively about some of the very big issues facing the sector and the important part they as individuals have to play in building a successful and sustainable long-term future for our industry. It is imperative that the industry continues to recognise the importance of informing, developing and listening to the next generation of leaders. This conference has certainly played a part in that and I look forward to discussing their ideas and recommendations with the board of Oil and Gas UK."
Dana share price reaches record heightThe announcement of an oil discovery by Aberdeen-based Dana Petroleum saw the share price of the company rise to an all-time high.
(Aberdeen Press & Journal) Dana has found oil in the West Rinnes area of the northern part of the North Sea, leading to promising signs for their other interests around the same area. At one point rising up to £16.57, Dana's share price closed for the session at £16.29, an increase of more than 17%. Chief Executive of Dana Petroleum, Tom Cross said: "This is an excellent result, which has exceeded our pre-drilling expectations. The discovery of good-quality oil at West Rinnes gives strong encouragement for a number of other prospects in the immediate area, including East Rinnes, which will be drilled imminently and also West Hudson, North Melville and South-West Rinnes, which have yet to be drilled."
Read all today's energy and utilities news from scotsman.comFOOD, DRINK & AGRICULTUREMarketing investment brings records profits for Inver HouseInver House distillers has reported that annual profits have doubled as a result of considerable investment in marketing.
(The Scotsman) The producer of Scotch whisky announced a 107% rise in pre-tax profits to £3.8million in 2008. The Airdrie-based Company produces brands such as Balblair, Old Pulteney and Speyburn. Managing director Graham Stevenson told The Scotsman: "We are delighted with 2007's results, but we have had a good, strong last couple of years. In 2005 and 2006 we increased our investment into marketing, which is bearing fruit now." Despite the 59p per bottle increase in tax on whisky by the UK government, Stevenson remained confident it would not impact on sales figures next year. "Obviously, we are disappointed. One of the main problems is the damaging precedent that it sets for export markets. However, the effect on single malts in the premium markets, like our brands, should not be too significant."
Read all today's food, drink and agriculture news from scotsman.com
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